AIR FARES UP 5.1%

BTS Releases 3rd-Quarter 2013 Air Fare Data; 3rd-Quarter 2013 Domestic Air Fare Up 5.1% from 3rd Quarter 2012 (Adjusted for Inflation)

The average domestic air fare increased to $390 in the third quarter of 2013, up 5.1 percent from the average fare of $371 in the third quarter of 2012, measured in constant 2013 dollars (Table 1), the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported today. During that July to September period, Huntsville, Ala., had the highest average fare, $559, while Atlantic City, N.J., had the lowest, $157 (Table 6).

BTS reports average fares based on domestic itinerary fares. Itinerary fares consist of round-trip fares, unless the customer does not purchase a return trip. In that case, the one-way fare is included. One-way trips were 32 percent of fares calculated for the third quarter of 2013. Fares are based on the total ticket value, which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time of the ticket purchase and do not include other fees, such as baggage fees, paid at either the airport or onboard the aircraft. Averages do not include frequent-flyer or "zero fares," or abnormally high reported fares.

The third-quarter 2013 fare was down 14.0 percent in constant 2013 dollars from the average fare of $453 in 2000, which was the highest of any third quarter, adjusted for inflation, in the 18 years since BTS began collecting air fare records in 1995 (Table 2). The 14.0 percent decline took place while there was an increase in overall consumer prices of 34.8 percent. In the 18 years since 1995, inflation-adjusted fares declined 11.2 percent compared to a 52.8 percent increase in overall consumer prices (Table 2). See BTS Air Fare web page for historic data.

U.S. passenger airlines collected 71.5 percent of their total revenue from passenger fares during the third quarter of 2013, down from 1990 when 87.6 percent of airline revenue was received from fares (Table 1A).

Quarter-to-Quarter Change

In the three-year period from the third quarter of 2010 to the third quarter of 2013, inflation-adjusted fares decreased 1.9 percent. In the two-year period from the third quarter of 2011 to the third quarter of 2013, inflation-adjusted fares increased 8.4 percent (Table 3).

Air Fares in Unadjusted Dollars

Not adjusting for inflation, the $390 third-quarter 2013 average fare was the highest average fare for any third quarter since 1995. The previous highest unadjusted third quarter fare was $367 in 2012 (Table 4).

Unadjusted third-quarter 2013 fares were up 3.4 percent from the second quarter of 2013 (Table 5). See Tables 13-16 for additional unadjusted fare data by airport.

Fares by Airport

Tables 6-8 provide fare data on the top 100 airports based on 2012 originating passengers. All figures are reported in 2013 dollars.

Table 6: Five highest and five lowest average fares in the third quarter: Huntsville had the highest average fare ($559) while Atlantic City had the lowest ($157). For the Top 100 Airports, see Table 10 on the BTS website.

Table 7: Five largest increases and five largest decreases in constant 2013 dollars from the third quarter of 2012 to the third quarter of 2013: Atlanta, Ga., had the largest increase (22.6 percent) and Bellingham, Wash., had the largest decrease (16.4 percent). For the Top 100 Airports, see Table 11 on the BTS website.

Table 8: Five largest increases and five largest decreases in constant 2013 dollars from the third quarter of 2000 to the third quarter of 2013: Newport News/Williamsburg, Va., had the largest increase (41.9 percent) and Bellingham had the largest decrease (59.3 percent). For the Top 100 Airports, see Table 12 on the BTS website.

For additional data, see Top 100 Airports, Rankings or All Airports. Since average fares are based on the Origin and Destination Survey 10 percent ticket sample, averages for airports with smaller samples may be less reliable. Fares for Alaska, Hawaii and Puerto Rico airports are not included in rankings but are available on the web page. Fourth-quarter 2013 average fare data will be released on April 22.

Table 1. 3rd Quarter Average Fare 1995-2013, Adjusted for Inflation

Source: Bureau of Transportation Statistics

Note: Percent change based on unrounded numbers

Table 1A. Passenger Airline Revenue from Fares 1990-2013

Source: Bureau of Transportation Statistics, P-12

* Scheduled passenger airline total revenue is the sum of the following Schedule P12 accounts with account numbers: Reservation cancellation fees (3919.1), Baggage fees (3906.2), Miscellaneous Operating Revenue (3919.2), Transport-Related Revenue (4898) and Passenger Revenue (Fares) (3901).

Table 2. Percent Changes to 2013 in Average Domestic Average Fares and the Inflation Rate* by Year Since 1995

(3rd Quarter to 3rd Quarter for fares; Sept to Sept for inflation)

Source: Bureau of Transportation Statistics

* Rate calculated using Bureau of Labor Statistics Consumer Price Index

Table 3. Inflation-Adjusted Average Domestic Airline Fares by Quarter

Average Fare and Percent Change by Quarter

SOURCE: Bureau of Transportation Statistics

Note: Percent change based on unrounded numbers

* Fares for the most recent four quarters are in current dollars, not adjusted for inflation.

Table 4. Unadjusted 3rd Quarter Average Fares, 1995-2013

Source: Bureau of Transportation Statistics

Note: Percent change based on unrounded numbers

Table 5. Unadjusted Average Domestic Airline Fares by Quarter

Average Fare and Percent Change by Quarter

SOURCE: Bureau of Transportation Statistics

Note: Percent change based on unrounded numbers

Table 6. Airports with Highest and Lowest U.S. Domestic Average Itinerary Fares 3rd Quarter 2013

Top 100 Airports* Based on 2012 U.S. Originating Domestic Passengers

Source: Bureau of Transportation Statistics

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

Table 7. One-Year Change by Airport: Top 5 Percentage Increases and Decreases in U.S. Domestic Average Itinerary Fare, 3Q 2012 to 3Q 2013

Top 100 Airports* Based on 2012 U.S. Originating Domestic Passengers, Fares Adjusted for Inflation

Source: Bureau of Transportation Statistics

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

Table 8. 12-Year Change by Airport: Top 5 Percentage Increases and Decreases in U.S. Domestic Average Itinerary Fare, 2000-2013

Top 100 Airports* Based on 2012 U.S. Originating Domestic Passengers, Fares Adjusted for Inflation

Source: Bureau of Transportation Statistics

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

For air fares for the following airports, go to http://apps.bts.gov/xml/atpi/src/index.xml

Multiple airport areas for which a single average fare calculation is available are: Boston, Chicago, Dallas-Fort Worth, Houston, Los Angeles, New York, San Francisco and Washington, DC.

Airports covered by average fare calculations are: